REPL Stock Hits Near 18-Month High On Pricing Of $150M Offering – But, Retail Sees Share Price ‘Unwinding Over Time’ 

• Replimune priced its pre-funded warrants covering another 2.74 million shares at $12.0599 each.
• Last week, the U.S. Food and Drug Administration granted accelerated approval to Replimune’s therapy for adults with advanced cutaneous melanoma.
• Analysts, on average, have set a 12-month price target at $19.33, reflecting around 40% upside potential from current levels.

Shares of Replimune Group (REPL) jumped 14% on Monday, after the biotech firm announced a $150 million fund raise, just days after securing U.S. Food and Drug Administration (FDA) approval for its melanoma therapy.

REPL shares climbed to their highest levels since February 2025.

REPL To Offer 9.7M Shares

The biotech priced about 9.7 million shares at $12.06 each, in line with Friday’s closing price, along with pre-funded warrants covering another 2.74 million shares at $12.0599 each. Replimune expects net proceeds of around $140.5 million after expenses, with the offering scheduled to close on August 11.

Replimune’s warrants prevent investors from exercising them if doing so would push their ownership above 9.99%. The warrants carry a minimal exercise price of $0.0001 per share, it said.

FDA Approval After 2 Rejections

Last week, the FDA granted accelerated approval to Tudriqev in combination with Bristol Myers Squibb’s Opdivo for adults with advanced cutaneous melanoma whose disease progressed following anti-PD-1 therapy.

The decision marked Replimune’s first product approval and followed two previous Complete Response Letters from the FDA. However, the therapy was supported by a 10-3 independent advisory committee vote last month.

Wall Street Says ‘Buy’ REPL

On Friday, Wedbush upgraded Replimune to ‘Outperform’ from ‘Neutral’ and raised its price target to $19 from $12, calling the approval a meaningful validation of the drug’s data. BMO Capital also raised its price target to $20 from $16 and maintained an ‘Outperform’ rating.

Analysts on average have pegged the stock’s 12-month price target at $19.33, about 40% upside potential from current levels. Seven of the eight analysts covering the stock have a ‘Buy’ rating, while one has a ‘Sell’ rating, according to Koyfin data.

Retail’s Take On REPL’s Offer

Despite the surge, retail sentiment surrounding REPL on Stocktwits remained ‘extremely bearish’ over the past 24 hours, amid ‘extremely high’ message volumes.

One user said the offering may seem bullish short-term but likely will cause “some unwinding of the stock price over time.”

Another user opined that investors are funding “commercialization and execution.”

The stock is up about 56% so far this year.

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